CLA-2-87:OT:RR:NC:N2:201
Kayla R. Owens
Stein, Shostak, Shostak, Pollack & O’Hara, LLP
865 S. Figueroa Street
Los Angeles, CA 90017
RE: The tariff classification, marking and country of origin of electric scooters Dear Ms. Owens: This is in response to your letter dated July 28, 2022, you requested a marking and country of origin ruling determination on electric scooters behalf of your client, CycleBoard, Inc. of Newport Beach, California. The merchandise under consideration has been identified as five (5) models of the CycleBoard Electric Scooters (three wheeled; 2 front wheels and 1 rear wheel) with a single-step folding handle design and a lean to steer platform.
The first model, the CycleBoard City Electric Scooter can travel up to 20 miles with a maximum wattage of 800 W and a 10 Ah LG battery. The CycleBoard City model has 8.5 inch tires, is 40 inches long and 22 inches wide at the front and weighs 60 pounds. It uses a hydraulic rear brake, as well as electronic braking, and front and rear suspension.
The second model, the CycleBoard City X Electric Scooter can travel up to 25 miles with a maximum wattage of 800 W and a 14 Ah battery. The CycleBoard City X model has 8.5 inch tires, is 40 inches long and 22 inches wide at the front and weighs 60 pounds. It uses a hydraulic rear brake, as well as electronic braking, and front and rear suspension.
The third model, the CycleBoard Rover Electric Scooter can travel up to 40 miles with a maximum wattage of 1,500 W and a 20 Ah LG battery. The CycleBoard Rover model has 10 inch tires, is 44 inches long and 25 inches wide at the front wheels and weighs 80 pounds. It uses a hydraulic rear brake plus electronic braking, and front and rear suspension.
The fourth model, the CycleBoard Rover X Electric Scooter can travel up to 40 miles with a maximum wattage of 2,000 W and a 20 Ah LG battery. The CycleBoard Rover X model has 11.5 inch tires, is 46 inches long and 25 inches wide at the front wheels and weighs 90 pounds.
It uses a hydraulic rear brake, front drum brakes plus electronic braking, and front and rear suspension.
The fifth model, the CycleBoard Golf Electric Scooter can travel up to 40 miles with a maximum wattage of 1,000 W and a 20 Ah LG battery. The CycleBoard Golf model has 10 inch tires, is 44 inches long and 25 inches wide at the front wheels and weighs 83 pounds. It uses a hydraulic rear brake and includes front and rear suspension.
You state that while the electric scooters will be ultimately assembled in China, the scooter’s chassis/frame will be made in Vietnam. You also state “If any other components are marked with their country of origin and those markings are visible to the ultimate purchaser, CycleBoard also proposes having a hang tag that is prominently and securely affixed to the scooter that states ‘Frame Made in Vietnam’: origin of other components as marked”.
The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983) (Uniroyal). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In Uniroyal case, the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe".
It has continually been the opinion of CBP that the chassis/frame, which in this case is a product of Vietnam, is the part of the scooter that imparts its “essence”. Based on the information provided, the culmination of production processes performed in China to the Vietnamese frame does not substantially transform the frame. Accordingly, the merchandise will remain a product of Vietnam, and the Section 301 measures will not apply.
Additionally, the electric scooter is a product of Vietnam, and it should be marked as such. The country of origin marking “Frame Made in Vietnam: origin of other components as marked” is not acceptable.
The applicable subheading for the CycleBoard City, the CycleBoard City X, the CycleBoard Rover, the CycleBoard Rover X and the CycleBoard Golf Electric Scooters will be 8711.60.0090, HTSUS, which provides for “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars: With electric motor for propulsion: Other”. The rate of duty will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division